Never finance, lease, borrow or even save money to purchase another vehicle in your life. Unlike the vast majority of Canadians who pay interest to a financial institution for a loan, or the smaller group of people who will save and pay cash for their new vehicle (removing those funds from their interest-generating savings account, thus reducing the amount of interest they will earn) you can use the Infinite Banking Concept to personally finance your new vehicle.
First, create a ‘pool of money’ in a very stable account that is guaranteed to grow. The Bankers’ Secret – based on Infinite Banking Concept – suggests using dividend-paying whole life insurance to create this pool of money. You will then use this growing pool to finance your car yourself and as you pay the money back, the principle and interest that you would have lost to a bank goes directly back into your money pool.
By using an appreciating asset as collateral, you can turn vehicle financing into a wealth accumulation technique.